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Now, only 35 goods in highest tax bracket of GST

Monday, July 23, 2018

The GST Council has pruned the 28% slab by cutting tax rates on 191 goods over the last one year, leaving just 35 items, including AC, digital camera, video recorders, dishwashing machine and automobiles, in the highest tax bracket.

There were around 226 goods in the 28% category when Goods and Services Tax (GST) was implemented on July 1, 2017.

Over the last one year, the Council, chaired by Union Finance Minister and comprising state ministers, has slashed rates in 191 items.

The 35 goods, which will be left in highest slab once the new GST rates are implemented from July 27, also include cement, automobile parts, tyres, automobile equipments, motor vehicles. Yachts, aircrafts, aerated drinks, betting and demerit items like tobacco, cigarette and pan masala.

Experts said going forward as the revenues stabilise, the Council may look at further rationalisation of the 28% slab, to restrict the highest tax slab to super luxury and sin goods.

Deloitte India Partner M S Mani said it would be logical to expect that once the GST collections after the recent reductions stabilise, the remaining items such as televisions of all sizes, dishwashers, digital cameras, air conditioners could be considered for an 18% rate.

"It would be ideal if only demerit goods are retained in the 28% slab so that a gradual movement towards having fewer GST slabs can be initiated," Mani said.

After the latest rounds of rate cuts by the GST Council on July 21, only 35 items are left in the 28% tax slab, an official said.

The Council brought down tax rates to 18% from 28% on 15 items, including vacuum cleaners, washing maching, 68 cm (27 inch) TV, fridge, laundry machines, paints and varnishes.

India Inc hails GST Council's decision to allow quarterly return filing
India Inc yesterday welcomed the GST Council's decision to allow quarterly return filing for businesses with turnover of up to Rs 5 crore, saying the move will boost compliance.

In his first GST Council meeting since he took charge as the Finance Minister in May this year, Piyush Goyal allowed businesses with turnover of up to Rs 5 crore to file quarterly returns -- a move which will benefit 93% of the GST registered taxpayers. They will have to, however, pay taxes monthly.

So far, businesses with turnover of up to Rs 1.5 crore were permitted to file returns quarterly.

In a statement, the Confederation of All India Traders (CAIT) said the single page return form to be filed quarterly for traders having turnover up to Rs 5 crore is a bold step which will ease miseries of traders.

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